Sustainability is no longer a choice for brands. It is a must. When sustainability gives enterprises a competitive advantage, it is a win-win for all!
There has been a significant increase in sustainability awareness in the business world in recent years. Corporations have been centering on the Reduce, Reuse, and Recycle concept, and consumer preferences have undergone a paradigm shift.
It all started with The Paris 2 degrees C Agreement in 2015, which required countries to reduce their carbon footprint and aim for carbon neutrality by 2030. Fast-forward to 2024, brands have been pushing sustainability, and consumers couldn’t be happier.
However, there’s more to it than just ethics and environmental consciousness. In this article, we will understand the enterprise mindset behind sustainability in business, gauge how sustainability gives brands a competitive advantage, and explore some metrics and strategies.
What is Sustainability Marketing?
Sustainability marketing, alternatively termed green marketing, is a purpose-driven practice that focuses on a business’s impact on the ecosystem. When a brand claims it is sustainable, it must market products sourced, manufactured, and distributed in a way that leaves a minimum carbon footprint. Using renewable energy sources during the manufacturing stage, adopting green measures in the supply chain, using recyclable packaging, or green outlet operations and designs are some primary measures to drive sustainability.
Sustainable marketing through compelling storytelling and engagement is instrumental in creating awareness in the consumer base about responsible business practices.
Some staggering numbers that reveal what brands and consumers think about sustainability:
- A recent Grant Thornton International Business Report (IBR) survey reveals that 62% of enterprises believe sustainability to be a driving force for success.
- The pandemic has amplified this consciousness and shift in choices. 37% of respondents believe going green or implementing sustainability in their operation helps them improve access to capital. Investors and private equity firms emphasize importance on how a business addresses environmental issues before choosing to lend or invest capital.
- 43% of mid-market businesses have adopted sustainability as they cater to large corporations who have to report on their Scope 3 (GHG) emissions.
- A Unilever report affirms that 33% are now choosing to buy from sustainable brands.
- In a Nielsen IQ and McKinsey & Company report, over 60% of surveyed respondents preferred sustainably packaged products and were willing to pay more.
- The report also shows that products making ESG-related claims averaged 28% cumulative growth, compared to 20% growth in brands with no such claims.
- In a Statista whitepaper, we notice that 47% of Gen Z consumers in the United States are willing to spend more money on sustainable consumable products.
- 45% of Gen Z respondents prioritize cruelty-free products, again a part of sustainability marketing.
- Millennials and Gen Zs prefer to work with ethical and climate-conscious employers. They believe employers must prepare the workplace to transition to a low-carbon one.
- Gen Zs and millennials continue to demand intense climate action from their employers and believe some have deprioritized sustainability strategies in recent years. They also see a critical role for employers to provide the necessary skills training to prepare the workforce for transition to a low-carbon economy.
It is evident that if businesses do not align their marketing strategies with consumer preferences, customers will head somewhere else, leaving brands with no visibility or trust.
Environmental, Social, and Governance (ESG) goals are no longer ‘good to have’. They are a ‘must-have’ for businesses!
Businesses have a choice, i.e., to either self-assess their ESG goals through relevant tools and frameworks or get assessed by third parties like MSCI, Sustainalytics, or S&P Global. However, with self-assessment, we ponder another important but alarming aspect of sustainable marketing practices: Greenwashing.
Are brands ethically practicing sustainability, or are they greenwashing?
In the wake of being driven by business gains via sustainability, stakeholders have identified the concept of greenwashing’. When enterprises declare themselves as green, as a mere lip service, and through self-regulation, they often present polluted offerings under the veil of green labels. It is as simple as “coloring your ad green” to catch some eyeballs! This malpractice essentially flouts all the ethics while amassing a gullible consumer base.
The result?
The impact on the planet is heavy, and consumers pay the price for being vulnerable to marketing gimmicks.
To highlight this, The New York Report did not hesitate to declare ESG a sham.
Corporations must ensure they implement measures so that ‘green’ and ‘zero carbon footprint’ do not exist as mere corporate buzzwords. They must back claim like being green or carbon-neutral with action.
Some giants like Volkswagen and BP, during investigations for greenwashing, admitted fake tall claims of eco-friendly products or green alternatives, as they relied heavily on fossil fuel.
The right approach is to provide evidence through genuine sustainability reports and make relevant claims in advertising.
Global conglomerates who walked the talk: Stood by their green commitments:
Some of the leading global conglomerates, however, treated these social and environmental obligations sincerely. Through effective campaigns and genuine efforts, they have set the benchmark for businesses worldwide, while sweeping consumers off their ground.
Patagonia
Through their The Common Threads Recycling program and their efforts of using 100% reusable, biodegradable packaging materials by 2025, they are creating a huge impact.
Toms
The leading footwear brand, has incorporated organic materials like sustainable cotton in their shoes and exercising noticeable efforts to reduce waste.
Starbucks
The global-favorite beverage brand, has been instrumental in driving sustainability through eco-friendly building materials in their outlets and recyclable cups.
Apple
Apple’s latest sustainability-themed ad features Mother Nature, enacted by Octavia Spencer, who visits Apple’s headquarters to reinforce their efforts to become carbon-neutral by 2030. Apple uses 100% recycled aluminum in its products like MacBooks, Apple watches, and iPod shuffles.
Wrapping it up
Sustainability practices are no longer about merely doing good for the planet. They give brands a clear competitive advantage, better trust, and resonance with their audience. With all those metrics speaking loud and clear, brands have no choice but to integrate sustainability into their business DNA. When sustainable business practice is a win-win situation for the brands, environment, and consumers, enterprises must consider it a fuel for revenue growth.
